Thinking about writing an offer on a Moorpark home and wondering how much earnest money you should put down? You are not alone. This is one of the most common questions first-time buyers ask once they start touring. In a few minutes, you will understand what earnest money is, how much buyers in Moorpark typically deposit, when it is refundable, and how to protect your funds from contract to closing. Let’s dive in.
What earnest money is
Earnest money is a good-faith deposit you deliver after the seller accepts your offer. In California, the amount, timing, and rules for release are set by the purchase contract, most commonly the California Association of REALTORS Residential Purchase Agreement. A neutral escrow or title company holds the funds.
This deposit shows the seller you are serious and gives the transaction a financial anchor. If the sale closes, your deposit is credited toward your down payment or closing costs. If you breach the contract after removing contingencies, the seller may seek to keep the deposit as damages, according to the contract.
Typical amounts in Moorpark
There is no one-size-fits-all number. Local practice often follows a percentage range and adjusts based on price point and competition.
- Typical guidance: 1 to 3 percent of the purchase price.
- Competitive situations: Some buyers offer more to strengthen an offer.
- Staged structure: Many offers use an initial deposit followed by an additional deposit later.
Here are simple examples to visualize the math:
- $700,000 purchase price: 1 percent is $7,000 and 2 percent is $14,000. A common approach is a $5,000 to $10,000 initial deposit, with an additional deposit later.
- $950,000 purchase price: 1 percent is $9,500 and 2 percent is $19,000. Buyers often show $10,000 to $20,000 total earnest money.
- $1,500,000 purchase price: 1 percent is $15,000 and 2 percent is $30,000. Deposits are larger in dollars, often staged in two parts.
Use these as illustrations. The right number depends on your comfort, your lender, and current Moorpark competition.
How deposits are paid and held
Your deposit goes to the escrow or title company named in the offer, not to the seller or the listing agent. Escrow holds your money in a trust account and follows written instructions from both parties.
- Accepted payment methods: Cashier’s check, certified check, or wire transfer are common. Personal checks may be accepted but can delay clearing.
- Timing: The contract sets the deadline for the initial deposit. Many buyers plan for a short delivery window measured in business days after acceptance.
- Proof: Ask for a written escrow receipt and keep your bank or wire confirmation for your records.
When earnest money is refundable
Refundability is tied to your contingencies and the deadlines in your contract. If you cancel within a valid contingency period and follow the contract’s procedures, your deposit is typically returned.
Common contingencies include:
- Inspection: If you cancel within the inspection period, the deposit is normally refundable.
- Loan: If financing cannot be obtained and you cancel within the loan contingency window, it is typically refundable.
- Appraisal: If the appraisal comes in low and you cancel before removing the contingency, the deposit is usually refundable.
- Title and disclosures: If material issues arise and you cancel within your review period, the deposit is commonly refundable.
Always track your timelines and provide written notices on time. Proper documentation protects your rights.
When it becomes non-refundable
Once you remove contingencies in writing, your deposit generally becomes non-refundable unless the seller fails to perform. If you later default without a valid contingency or seller breach, the seller may claim your deposit as damages under the contract.
If there is a dispute, escrow will hold funds until both parties sign a mutual release, a court orders disbursement, or a mediation or arbitration outcome directs escrow what to do. Keep every document and timestamp in case questions arise.
How it applies at closing
If the sale closes, your deposit becomes a credit on your closing statement. It is applied toward your down payment, closing costs, or other line items. Escrow will issue a final statement showing exactly how your funds were used.
If the transaction cancels within a valid contingency window, your deposit is returned according to the mutual instructions given to escrow. If a default occurs after contingency removal, the seller may request release of funds as allowed by the contract, subject to dispute procedures.
Typical timeline to expect
Every contract is unique, but many Moorpark escrows follow a 30 to 45 day path. Here is a simple example to help you visualize the flow:
Offer accepted (Day 0)
|
Initial deposit due per contract (often within 1–3 business days)
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Inspection period (for example Day 0 to Day 10–17)
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Loan and appraisal period (for example Day 0 to Day 17–21)
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Buyer removes contingencies in writing — deposit generally becomes non-refundable
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Final escrow tasks — title clearance, lender conditions, final walk-through (Day 30–45)
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Closing — earnest money credited to your down payment or closing costs
Your exact dates will be set by your signed contract. Put reminders on your calendar for every deadline.
Tips to protect your deposit
- Confirm the deposit deadline in your accepted contract and fund early to avoid delays.
- Call the escrow company directly to verify wiring instructions before sending any funds.
- Ask for a written escrow receipt the same day your deposit is delivered.
- Track every contingency date and send written notices on time.
- Use staged deposits if you want to show strength while limiting early risk.
- Avoid waiving contingencies unless you fully understand the risk and have discussed it with your agent and lender.
How much should you offer
Start with your comfort level and lender guidance, then consider local competition. A 1 to 3 percent deposit is a common guideline, but you can make your offer more compelling by pairing a reasonable deposit with clean terms and standard contingencies. In multiple-offer situations, some buyers increase the deposit or add a second deposit that triggers later.
What to confirm with escrow
Before you transfer funds, ask escrow to confirm:
- Accepted payment methods and any wire or check fees.
- Exact payee name and account details for a safe transfer.
- How quickly a deposit receipt will be issued.
- Disbursement steps if a cancellation occurs within a valid contingency period.
Common mistakes to avoid
- Guessing on deadlines and missing a cutoff for cancellation or contingency removal.
- Sending a personal check that delays clearing when the contract requires quick delivery.
- Removing contingencies before your inspection, appraisal, and loan conditions are resolved.
- Not keeping copies of deposit receipts, wire confirmations, and notices.
The bottom line for Moorpark buyers
Your earnest money is a powerful signal to a seller and a key part of a smooth escrow. Choose a deposit amount that fits your budget and the market, fund it on time, and follow your contingency timeline closely. With a clear plan and good communication with your agent, lender, and escrow, you can protect your deposit and move confidently toward closing.
If you want local guidance tailored to your budget and timeline, schedule a quick consult. Madeleine Gillibrand and The Gillibrand Group can walk you through deposit strategies, timelines, and next steps so you can compete wisely in Moorpark. Schedule a free consultation.
FAQs
Is earnest money the same as a down payment in Moorpark
- No. It is a good-faith deposit that is credited toward your down payment or closing costs at closing.
Can I get my earnest money back if I change my mind in California
- Usually only if you cancel within a valid contingency window and follow the contract’s written cancellation procedures.
Who holds my earnest money in a Moorpark purchase
- A neutral escrow or title company named in your purchase agreement holds the funds in a trust account.
How much earnest money is competitive in Moorpark right now
- Many buyers use 1 to 3 percent of the price as a starting guideline, then adjust based on competition and comfort.
What happens if the seller accepts another offer after I paid my deposit
- If you have an accepted contract, the second acceptance is typically not valid for your transaction. Contact your agent and escrow immediately to address next steps.
